That's correct. My point is that the original theory of exchange rates had to do with "natural" demand and supply. If a country produces great cheese, and you w

That's correct. My point is that the original theory of exchange rates had to do with "natural" demand and supply. If a country produces great cheese, and you want to buy that cheese, demand for the currency to buy that cheese is up. This does not apply any more, and many financial markets have little to do with real economic utility. Alas, when gravity hits - and it always does - people are still shocked.